Biotech turnaround gathering pace

Pharmaceuticals group British Biotech says its turnaround of the company is gaining momentum, with four collaborations established in the past half year. The group, which hit problems in 1998 when it was accused of making misleading statements to investors, said it had seen a successful half year and was focused on transforming itself into a company with a broad product pipeline.

In the six months, it clinched deals with Swiss group Serono, US companies ImmunoGen and Agilent Technologies, and Cambridge-based De Novo Pharmaceuticals, to drive forward research and development.

However, losses for the six months to 31 October increased to £13.4m, against £11.4m for the same period last time. The bigger loss was due to lower turnover and interest received, which was partly offset by lower expenditure. Turnover came in at £50,000, against £2.6m.

Dr Elliot Goldstein, who was appointed chief executive in August 1998, following the scandal, said: 'Our efforts at British Biotech are concentrated on its transformation into a company with a broad product pipeline to build substantial value for shareholders. Following a successful half-year in which we signed four important collaborations and further advanced our development pipeline, the turnaround at British Biotech continues to gain momentum.'